China’s Xiwang Special Steel is planning an initial public offering in Hong Kong, and is likely to raise US$217 million, The Wall Street Journal reported, citing a person familiar with the matter. The company is based in Shangdong province and manufactures steel, steel pipes and gearings. Its sale of 500 million shares will be priced between HK$2.65 and HK$3.36, which translates to four to five times forecast earnings for 2012. Proceeds from the sale will be used to fund the expansion of existing production lines. However, some analysts believe 2012 will be a tight year for Chinese steelmakers, citing overcapacity and high prices for iron ore. The listing is scheduled for February 23 on the Hong Kong stock exchange.